1) The document discusses the impact of condition monitoring systems (CMS) on organizational performance at Transnet Freight Rail in South Africa. CMS assess the condition of rolling stock and infrastructure to proactively raise alarms before catastrophic incidents occur. 2) While CMS allow for maintenance based on asset conditions, Transnet Freight Rail faces challenges like delays from cumulative incidents and internal conflicts. CMS are also criticized for being unreliable and inconsistent, while being costly to implement and upgrade. 3) The study assessed the impact of CMS on financial and internal business process performance metrics. The results showed mixed perceptions of CMS's impact. CMS could improve asset utilization and revenue if issues with implementation are addressed.

1. The Impact of Condition Monitoring Systems on organisational performance in
South African railway Industry: The case of Transnet Freight Rail
Page 1 of 2
Kabelo Ngobeni John Andrew van der Poll
Transnet Freight Rail: Rail Network Telecoms Graduate School of Business
Graduate School of Business Leadership (SBL)
Leadership (SBL) University of South Africa
University of South Africa
Kabelo.Ngobeni@transnet.net vdpolja@unisa.ac.za
Theme of the paper: Condition Monitoring Technologies enhances organisational
performance.
Abstract
A country’s infrastructure endowment plays a premeditated function in its
economic progression and international competitiveness (WEF, 2014). Such
infrastructure provides for economic benefits and facilitates trade and production
efficiencies for other industries. Transnet Freight Rail (TFR), has adopted
Condition Monitoring Systems (CMSs) to assess conditions of rolling stock and
infrastructure proactively, by raising alarms when pre-set threshold are breached,
prior a catastrophic incident can occur. Knowledge of the infrastructure condition
makes it possible to maintain, based on the condition of its components. Contrarily,
TFR is faced with challenges of accumulative incidents, minute’s delays and intra
departmental conflicts.
The use of CMSs systems has received criticism from users that they are
untrustworthy, inconsistent and unreliable. At the same time, TFR has embarked
on capital intensive projects to continuously upgrade current, and roll out new
systems. Both these challenges are top management concerns since the cost of
CMSs is intense and high expectations are attached to CMSs performance.
This paper assessed the impact of CMSs on organisational performance; Financial
and Internal Business Process perspectives. The aim is to inform management on
whether the said CMSs justifies the current and intended return on investment,
and the future of CMSs in the S.A. railway industry. A descriptive research study

2. The Impact of Condition Monitoring Systems on organisational performance in
South African railway Industry: The case of Transnet Freight Rail
Page 2 of 2
following a quantitative statistical model, was conducted to recommend the
validated final course of action. The results of the study showed a mixed
perception on how CMSs are impacting on the defined organisational
performance.
It was concluded that CMSs form the basis for long-term financial planning that
settles the intentions of maintenance, operations and investment budgeting,
thereby subsidising the extension of cost-effective life cycle of assets. The positive
findings also recommend and advise management on the way-forward that, by
adopting CMS’s improves utilisation of assets, and enhance revenue generation.
The negative findings recommend management to implement CMSs development
plan to rectify deviating practices and that they take informed decision on future
deployment.